It was awful; it was produced over just 4 days, and the effects look like a highschool morning news class did them. All it was was a last minute grab to hold on to the rights. Which is sad because with the right cast, I could see it being absolutely fucking brilliant. I even know who I'd want Lews Therin to be played by: Timothy Omundson. Anyone who's watched Supernatural and seen him as Cain knows how perfect he'd be for that part.
And apparently Jordan's widow has called it an unauthorized work. Since usually contracts are fairly clear about rights and permission I imagine it'll be cleared up on one side or another fairly quickly, either there was some violation of contract by making the pilot and airing it without permission or they had preexisting permission to do whatever they wanted.
And thank Haruhi they outright said a movie would be a bad idea. You'd have to cut away and change so much to fit it into two hours (even if you're going for three movies) that you honestly would only have a work vaguely related to the books.
I hate to say it, but it sounds like Red Eagle had reason to sue. She was mucking up negotiations with Sony on a property they have the rights to. Her making statements like that could damage a legitimate deal and her statements sound like they were indeed a breech of contract.
If you don't want to get stuck in a position like that, don't sign contracts with clauses that can get you sued for making such claims.
I don't see this as a big evil corporation beating down the little person and bullying a poor widow at all. They're protecting their license, as harsh as it sounds, and it's in their best interests to do so. Bet it will be settled out of court for a modest settlement against her and another legal document that takes back what she said and ensures she doesn't do it again.